Turkish Central Bank left the rate unchanged

Analysts and investors closely followed the course of the meeting of the Turkish Central Bank, waiting for the final decision on the discount rate. For the policy of the Turkish regulator, a characteristic feature was the rate of repeated reduction, which was supported by the demand of the country’s President Tayyip Erdogan. These Turkish regulatory measures led to a significant drop in the national currency. In November last year, the lira collapsed by 18%, marking the most significant fall in a twenty-year period. As of December 20, the lira stood at 18.4 per dollar, up from 7.4 per dollar at the start of 2021. Analysts expressed concerns about further deterioration of the situation in the country’s financial system. The Turkish currency was able to appreciate significantly after the measures initiated by President Tayyip Erdogan, which reduced the volatility of its rate. Most analysts expected that following the results of the January meeting, the Turkish Central Bank would leave the rate unchanged at the level of 14%, which was confirmed by the regulator’s statement.

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Arseny Kudrin

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